AN AVERAGE Coventry worker now needs a 59 per cent pay rise in order to afford a mortgage, a new report has shown.
The National Housing Federation Home Truths report for 2017/18 shows the average home now costs around £181,443 in Coventry.
This is seven times the typical salary in the city, making home ownership an unattainable goal for many.
The national report revealed average house prices have risen by around a quarter in the West Midlands over the last 10 years – from £170,000 in 2007 to £209,000 last year.
The organisation’s report shows the cost of renting privately has added pressure on people’s income.
Average monthly rents now stand at £593 swallowing up around 27 per cent of private renters’ monthly income.
According to the study, 25 per cent of housing benefit recipients are in work, yet are still unable to afford their rent.
One of the reasons for the growing crisis is down to a large shortfall of new and affordable housing.
Between 2012 and 2016, there was a deficit of 5512 homes that needed to be built in Coventry to cater to demand.
However, a Coventry City Council spokesperson said: “We are committed to working jointly with our housing association partners to deliver affordable housing across Coventry.
“This includes a range of types and tenures of affordable homes.
“Since 2011 more than 2,100 new affordable homes have been completed, which exceeds the initial requirement in the Local Plan.
“We are also committed to working with the West Midlands Combined Authority through the Homelessness taskforce and Housing First initiative to support the city’s most vulnerable.
“Through the Homelessness Reduction Act we will also be working with private sector landlords to improve accessibility and availability of high quality private rented accommodation.”
Housing associations, responsible for building affordable homes in the West Midlands, contributed more than a tenth (11 per cent) of the total new build by housing associations in England in 2016/17, equating to 4,086 homes.
Kate Warburton, external affairs manager for the National Housing Federation, said: “The housing market has seen a relentless rise in the gap between house prices and people’s salaries.
“Coventry is no exception. Attaining a mortgage is increasingly unrealistic and private sector rents make saving up that bit more difficult.”
“As this year’s Home Truths report shows, it is more important than ever for the sector to be able to deliver homes that are truly affordable.
“If we want to get serious about ending the housing crisis, we need to start looking at unlocking more land so we can build homes faster.”